Baljit Ubhey, chief crown prosecutor for London, said prosecutors had to consider the ‘seriousness of the alleged offence and the level of harm done’.

She added: ‘While the decision to charge was taken by the Metropolitan Police Service, a subsequent review of the case by the CPS did not give due weight to the public interest factors tending against prosecution.’

Iceland itself said it did not see the merit in a prosecution (Picture: AFP/Getty)

Ms Ubhey continued: ‘We hope this demonstrates our willingness to review decisions and take appropriate and swift action when necessary. The Crown Prosecution Service is committed to bringing the right charges to court when – and only when – it is proper to do so.’

The three men had been charged under the 1824 Vagrancy Act for being found in ‘an enclosed area, namely Iceland, for an unlawful purpose, namely stealing food’.

They had initially been arrested on suspicion of burglary and held for 19 hours after being found with tomatoes, mushrooms, cheese and Mr Kipling Cakes leaving the store in Kentish Town, north London, last October.

Mr May, a 35-year-old web designer who lives in a north London squat along with his co-defendants, told the Guardian he had done nothing wrong and was looking for the case to be dropped.